FILE PHOTO: A Chinese national flag flutters outside the headquarters of the People's Bank of China, the Chinese central bank, in Beijing, April 3, 2014. REUTERS/Petar Kujundzic/File Photo

BEIJING (Reuters) - China’s central bank said on Friday that it will maintain a prudent and neutral monetary policy and keep liquidity basically stable.

China will also strengthen oversight to prevent risks in the shadow banking category, including asset management products, the People’s Bank of China (PBOC) said in its first-quarter monetary policy implementation report.

The PBOC said it will provide necessary liquidity support for “reasonable growth of credit” but will control the increase in non-performing loans and restrict credit flowing into speculative housing purchases.